Abstract

ABSTRACT Interface mechanisms in international economic law refer to international, regional, or domestic legal instruments that resolve problems arising from differences in economic systems. The existing interface mechanism regarding disciplining state-owned enterprises (SOEs)’ activities remains unclear and has led to disputes and a divergence of views among major trading partners, most notably between the United States and China. The underlying cause is the lack of an analytical framework to understand SOEs from a comparative view that may foster consensus-building discussions. This article constructs a comparative institutional framework to understand SOEs in a variety of market economy settings, which inspires new approaches in analyzing SOE-related legal issues in international economic law. This article takes the ‘public body’ issue in the WTO and the new disciplines on SOEs as examples, demonstrating that a type of activity-based approach can be a new interface mechanism for international rules on SOEs.

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